Ukraine threatens to creditors by default

Ukraine, which since the coup managed to completely lose the confidence of international investors and creditors, continues to urge the special relationship and the partial remission of dogs.

In another development Kyiv, may declare a default and unilaterally abandon debt payments, convinced the Minister of Finance of Ukraine Natalie Jaresko.

In the foreseeable future can solidly increase the danger for stability both financial and political systems of Ukraine. It will happen in that case, if international creditors will not begin negotiations with the government about restructuring the debt, stated the Minister of Finance of Ukraine Natalie Jaresko. This, it is estimated that threatens investors far greater losses in the revision of the procedure for payment of the debt.

"They don't understand, for a start, depth of financial and economic distress, which currently is power", - said the Minister in his interview to The Wall Street Journal. The situation will become worse, it will send a country to refuse unilaterally from the payment of the debts, although the Ukrainian government and not have to go to this step.

"In our Parliament there was considerable debate on populist initiatives from some parties, according to which the debt can never be paid. This is 1 of those risks that lenders must take into account", - said Natalia Jaresko.

Despite severe economic difficulties, the head of the Ministry of Finance of Ukraine has worked to assure other powers and international organizations, including the international monetary Fund, is that many of the conditions for reforming the state system and the fight against corruption are performed. "A lot of things that have worried investors, today cleaned up layer by layer like an onion," she stated.

And yet, many economic experts saw in the words of the official Ukrainian threat to international lenders to declare a default and to completely turn away from all the payments on the loans in that case, if you can't come to an agreement on debt restructuring. This, however, would be the latest blow to Kiev's reputation as a financial partner.

sections: Economics, World News, Accidents